This article is a guest post by Matt Wood, global head of finance and accounting outsourcing at Personiv. The views expressed are solely those of the author.

As Generation Z enters the workforce, they are changing workplace norms in ways that drive innovation and technology adoption, aligning with their long-established habits and ways of thinking. However, this change is happening only inpartof the workplace: young people are largely avoiding accounting careers, despite some recent signs of renewed interest among undergraduates.

Between 2016 and 2020, when the oldest members of Gen Z were around 23, the number of U.S. college graduates earning accounting degreesfell by 17%. In the following two years, the number of bachelor's degrees in accounting awardeddropped another 8%. The number of students pursuing master's degrees in accounting and taking the CPA exam has also been declining for years.

Amid these negative trends, one bright spot is that undergraduate accounting enrollment in the U.S. in fall 2024increased by 12%compared to fall 2023 (while graduate accounting program enrollment fell by 2.8% over the same period). If this upward trend among undergraduates continues, the industry could see a more robust talent pipeline in a few years.

Matt Wood, global head of finance and accounting outsourcing at Personiv
Matt Wood
Image provided courtesy of Matt Wood

Meanwhile, thechronic shortageof new talent poses a challenge to finance and accounting organizations. In 2024, more than80% of surveyed CFOssaid there is anaccounting talent shortage, with 10% saying it is getting worse.Data from the U.S. Bureau of Labor Statisticssupports this view, projecting a 6% growth in demand for accounting and auditing jobs by 2033, even as many current practitioners retire or change careers.

A shortage of entry-level accountants can increase burnout among existing staff, leading to turnover and ultimately worsening the problem. Breaking this cycle starts with understanding why young people are now less interested in accounting careers. Organizations can then adjust their strategies to attract a smaller pool of new graduates and find new ways to retain existing employees.

College costs, CPA requirements, and more deter Gen Z

Gen Z is cautious about taking on college debt, and the average annual cost of a U.S. college education in 2024exceeded $38,000. Four-year collegeenrollment has declined, partly due to high costs and this generation's wariness of debt. But for those who want to become accountants, a degree is required.

After graduation,becoming a CPAinvolves another set of hurdles. Preparing for the four exams requires a significant time commitment, and review courses and exam fees can add up to thousands of dollars. After passing this notoriously difficult exam, one must work under a CPA for a year before practicing independently. Young people today grew up with the idea that flexibility is key to success, and for them, spending years and tens of thousands of dollars to pursue what seems like a narrow career path may be seen as a high-risk choice.

The hardworking and analytical students who might have been interested in accounting in a previous generation now have options that may offer better pay, work-life balance, or growth opportunities. For example, computer science graduates can earn more than accounting graduates right out of school, without the year-long apprenticeship. In many cases, associate degrees or "bootcamp" training can get people into tech faster and cheaper than a four-year degree. Continuing education, often sponsored by tech employers, also provides an ongoing path for career development and skill advancement.

New strategies for a new generation

For now, accounting does not align with the life and career goals of many Gen Z individuals. Reversing the decline starts with better communicating what an accounting career can offer, while addressing the pain points that deter young people.

  • Promote accounting's stability and universal demand

Not everyone aspires to a career full of change and pivots, even those who grew up in a fast-changing, tech-driven environment. For Gen Z students seeking long-term stability, accounting offers a solid foundation—businesses in every industry need accounting skills to operate, stay compliant, plan growth, and make informed decisions.

  • Highlight career development opportunities

Because accounting skills are needed across industries, new accountants can chart a career path that aligns with their interests, whether in banking, healthcare, education, nonprofits, or dozens of other sectors. Additionally, organizations that offer upskilling or tuition reimbursement are more likely to attract and retain motivated accounting talent.

  • Talk about technology

Gen Z grew up with tablets, smartphones, and ubiquitous connectivity, so talking about the technological tools in accounting helps shed its "paper-based" stereotype. Companies using AI and automation for routine accounting tasks can highlight these tools to attract younger employees who expect to work with the latest technology.

  • Optimize workload

90% of CFOs say that in 2024 they haveoutsourced some workto fill open positions, reduce internal workload, or both. Strategic use of outsourcing can help maintain or improve work-life balance for accounting team members, and also allows them to focus on more challenging and rewarding projects that create higher value for the organization. At the same time, cost savings from outsourcing can enable organizations to offer more competitive compensation for internal hires.

Think long-term strategy

Promoting the positive aspects of an accounting career and using technology and outsourcing to reduce the mechanical work of internal talent are effective strategies now and in the long run. Supporting skill development also helps organizations cultivate and retain accounting talent. Adjusting messaging and operational practices now can help the accounting profession expand its appeal to younger members of Gen Z and subsequent generations.